24th Dec 2024 08:46
(Alliance News) - Vistry Group PLC shares plunged on Tuesday as it cut its profit guidance by GBP50 million in its third profit warning since October.
Shares in Vistry were down 16% to 549.50 pence in London on Tuesday morning. The stock is down 41% in the last 12 months.
The Kent, England-based housebuilder said calendar 2024 adjusted pretax profit is expected to be around GBP250 million, down from previous guidance of approximately GBP300 million. The company reported adjusted pretax profit of GBP419.1 million in 2023, so this year's result will be down 40%.
Vistry said the lowered guidance was due to delays to expected year-end transactions and completions, which are now expected in 2025.
Vistry also chose to not pursue a number of proposed transactions as the commercial terms "were not sufficiently attractive", and it believes more attractive options will be available in 2025.
Vistry said it has also seen delay to some open market completions which has had a lesser impact on profit.
It cut its profit expectations to GBP350 million from GBP430 million in early October, before a further cut to GBP300 million in November.
The under-pressure company was relegated to the FTSE 250 index from the FTSE 100 index in the quarterly review earlier this month, and this became effective on Monday.
Vistry also on Tuesday said it expects closing net debt around GBP200 million, up from GBP88.8 million last year.
Chief Executive Greg Fitzgerald said: "Today's announcement and the financial outcome for 2024 is disappointing. Our top priority for 2025 is to continue building and delivering high quality mixed tenure new homes for our partners and private customers, and to do our part in addressing the country's acute housing shortage.
"We remain committed to our partnership housing strategy and are firmly focused on positioning the business to move forwards and rebuild profitability."
Vistry said it will provide a full trading update for 2024 on January 15.
By Michael Hennessey, Alliance News reporter
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